Canada removing many retaliatory tariffs on U.S. goods

Prime Minister Mark Carney says Canada is removing some retaliatory tariffs on American products to match U.S. tariff exemptions for goods covered under the Canada-United States-Mexico Agreement.

Carney said at a news conference Friday that the decision will go into effect on Sept. 1, 2025.

The prime minister says free trade has been re-established for the majority of goods between Canada and the U.S.

Tariffs on steel, aluminum and autos will remain in place as Canada works with the U.S. to resolve issues, Carney says.

“Canada currently has the best trade deal with the United States,” Carney said, noting that the U.S. average tariff rate on Canadian goods is 5.6 per cent and remains the lowest among all its trading partners.

“And while it’s different from what we had before, it is still better than that of any other country.”

Carney says the Canadian government will start preparing for the CUSMA review process due next year by launching consultations next month.

Canada imposed 25 per cent tariffs on a number of American goods in March, including alcohol, clothing and shoes, cosmetics, motorcycles and oranges.

This is a developing news story. More to come.

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